The Salient Features of RERA
Understanding Key Milestones in Real Estate Regulation
A Paradigm Shift in Real Estate
The Real Estate Act introduces structural changes to how real estate projects are planned, funded, marketed, and executed. These salient features form the backbone of the law, ensuring total transparency and placing the buyer's interests above all else.
Establishment of Regulatory Authority
Mandates setting up of a State-level Real Estate Regulatory Authority to monitor and adjudicate disputes within the real estate sector.
Mandatory Registration
All commercial and residential real estate projects where the land exceeds 500 square meters or includes more than 8 apartments must be registered before launch.
Separate Escrow Account
A crucial rule requiring developers to deposit 70% of the funds collected from buyers into a separate bank account to exclusively cover construction and land costs.
Standardized Carpet Area
Eliminates ambiguity by defining carpet area uniformly across all projects, ensuring buyers pay only for the actual usable space.
Absolute Right to Information
Empowers home buyers with the absolute right to information regarding project plans, layout approvals, execution status, and subcontractor details.
5-Year Defect Liability
Developers are legally liable to repair structural defects or poor workmanship for up to 5 years after handing over possession, without additional charges.
Heavy Penalties
Imposes strict financial penalties (up to 10% of project cost) and possible imprisonment for developers and agents found violating the RERA orders.
Ensure Full Compliance Today
Understanding the features of RERA is just the first step. Proper implementation and compliance are what keep your projects legally secure and your buyers happy.